New York, Feb 2, 2026, 18:01 EST
- Palantir shares rose about 5% in extended trading after the company beat quarterly estimates and lifted its 2026 growth outlook
- Fourth-quarter revenue climbed 70% to about $1.41 billion, powered by a sharp jump in U.S. commercial sales
- The company projected 2026 revenue of $7.18 billion to $7.20 billion, above analysts’ expectations
Shares of Palantir Technologies jumped about 5% in after-hours trading on Monday after the company beat quarterly expectations and issued a 2026 revenue forecast that implies more than 60% growth. The stock had edged up less than 1% in regular trading before the results.
The quarter lands at an awkward moment for AI-linked software names. Investors have been quick to punish pricey stocks when guidance looks even slightly cautious, and quick to reward anything that hints at durable spending.
Palantir’s U.S. commercial growth is the part that’s pulling attention. It suggests the company is moving beyond pilots and into broader deployments, and it puts more weight on a business that can scale faster than long-cycle government contracting.
In a regulatory filing, Palantir said fourth-quarter revenue rose 70% to $1.4068 billion. U.S. commercial revenue climbed 137% to $507 million, while U.S. government revenue rose 66% to $570 million; GAAP net income was $609 million. Adjusted earnings, which strip out items such as stock-based compensation, were $0.25 a share, versus GAAP earnings per share of $0.24.
The company also pointed to a jump in deal flow. It said it closed 180 deals of at least $1 million and logged $4.262 billion in total contract value, or TCV — the total value of contracts signed in the period, before revenue is recognized. Chief executive Alex C. Karp called out a “2026 revenue growth guide of 61% year-over-year,” while Palantir said its “Rule of 40” score — a yardstick that adds revenue growth to operating margin — hit 127%. Business Wire
For 2026, Palantir forecast revenue of $7.18 billion to $7.20 billion, Bloomberg reported, compared with analysts’ average estimate of $6.27 billion. The company also projected current-quarter revenue of about $1.53 billion, which Bloomberg said topped expectations as well.
Wall Street had been looking for non-GAAP earnings of $0.23 a share on revenue of $1.34 billion, Constellation Research wrote. In his shareholder letter, Karp said, “Our record profit, however, is pure and uncontrived,” and argued that large language models — the AI systems behind chatbots — still need a software layer that can connect them to real-world business data and workflows. Constellation Research
Palantir sells software that helps customers integrate and analyze data, and it has been pushing its Artificial Intelligence Platform, or AIP, as a way for companies to deploy AI tools on their own data with tighter controls. The latest results leaned hard on the U.S. market, with commercial and government revenue both growing quickly.
But the stock’s valuation leaves little room for stumbles, and political scrutiny remains a live risk for a company that does deep work with government agencies. Karp defended Palantir’s surveillance technology, while the company’s work for U.S. Immigration and Customs Enforcement has drawn criticism; France’s Capgemini recently said it would sell a small U.S. unit with an ICE contract. “Palantir’s government segment remains key to its success, with contracts becoming deeply embedded in federal systems,” eMarketer analyst Jacob Bourne said. Shares were down more than 15% so far this month, and the stock traded at a forward price-to-earnings ratio of about 140, according to LSEG data cited by Reuters. Reuters
Palantir said it expects GAAP operating income and net income in each quarter of 2026. Investors will likely focus next on how much of the contract pile converts into revenue, and whether the surge in U.S. commercial deals holds up once the early adopters are fully onboarded.
